The Hindu Business Line : RCom gets GSM spectrum

New Delhi, Jan 11 Paving the way for the entry of Reliance Communication into the GSM mobile segment, the Department of Telecom has cleared spectrum allocation to the company in 14 circles.

This comes even as the existing GSM operators, on Friday, filed an appeal in the Delhi High Court against the move. The court will take up the case on Monday.

The DoT has also cleared spectrum allocation to three GSM operators — Vodafone Essar, Idea Cellular and Aircel — to start mobile services in new circles.

While these three companies had paid the entry fee and were awaiting spectrum since 2006, RCom had paid the entry fee on October 19, 2007 making it the first among the 46 new applicants.

Aircel has been given spectrum for 14 circles and Idea Cellular gets entry into Mumbai and Bihar. Vodafone Essar has been given spectrum in six new circles in Tamil Nadu, West Bengal, Orissa, Assam, North East and Jammu and Kashmir. The DoT will issue the official letters in this regard to these companies shortly.

However, the GSM industry is peeved at DoT for allocating spectrum to RCom ahead of other waiting applications.

COAI seeks stay

The Cellular Operators Association of India has sought a stay on the Government’s decision to allow dual technology to RCom on the grounds that the move was illegal. Barring a stay order from the High Court, RCom’s entry into the GSM segment is now certain. DoT officials, however, said that RCom is being allocated radio waves on a trial basis only.

RCom along with the other three companies, which have been given spectrum, are all set to become pan-India GSM mobile operators and join the league of Bharti Airtel, which is the only operator at present with a national footprint. Bharti Airtel not only has to face more competition but it also has to increase the capital expenditure in network upgradation given that the company may not get any additional spectrum based on the tightened allocation norms.

As per the allocation norms Tata Teleservices could be the next company to get spectrum followed by the new companies which got the letters of intent on Thursday.